Possible reasons for 1 tablet per console:

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1) ) The tablet is going to be expensive: When bundled with a system, it is likely they will sell it at a loss to keep console prices down. However, if someone bought the system thinking they would have to buy 3 additional tablets at 100 to 150 dollars a piece, that might deter people.

2) ) Cross platform selling: A viable alternative to having 4 player local multiplayer for games like 4 swords and crystal chronicals is to have 1 person with a tablet and 3 with 3DSs. Nintendo is undoubtably trying to replicate last generation's market where there was a Wii and a few DSs in every home. By giving the ability to use the 3DS as a WiiU controller, it's likely to drive up sales for both systems.

The ability to generate 5 video streams at once isn't the issue, they've been able to do it since the Gamecube.

3) Avoid user frustration: If someone shells out more than $100 on a second, third, or fourth tablet, they may do so expecting each to have the same functionality as the first: ie being able to stream distinct games to multiple tablets at once. Now this is something the WiiU wont be able to do. By preventing users from having this opportunity, they are likely to reduce complaints.

As of now, we really don't know very much about the WiiU. In general I like most of what I see so far, but only having one tablet is my major point of contention as I was really hoping to see games similar to 4 swords and crystal chronicals. hHwever, if they do something similar to point 2, those games aren't dead yet.